TUI is closing down its travel agent stores with job losses of nearly 600 in France in the wake of the coronavirus pandemic.
The tour operator said that 583 jobs will be lost with either the closure or selling off of 70 stores.
It's hoped the restructure “should then enable Tui France to break even from 2021 onwards”.
TUI said that going forward they will focus on the "high-margin business with a few core brands" as it plans to cut costs globally by 30%.
In a statement TUI said: “The project foresees a reduction of 583 jobs, in the scenario of the closing of all own retail shops, which is approximately 60% of the current Tui France staff base.”
“The changes are now being discussed with the relevant committees and employee representatives in France.”
It added: “Tui France was already loss-making before the pandemic. In a structurally challenging market with a high cost structure and low margins, the company had been making losses in recent years.
“In the wake of the corona pandemic, the situation for Tui France has again deteriorated significantly. A far-reaching package of measures is now needed to create a perspective for the company within the group.”
"Overall, the TUI Group aims to reduce its overhead cost base by 30 per cent worldwide.
"The restructuring of TUI France is a step towards making TUI more competitive and then emerging from the crisis stronger."
TUI UK was forced to cancel all trips up to and including July 10.
It had previously planned to restart travel on July 1 but ongoing coronavirus restrictions has meant further delays.
But now the tour operator seems confident that things will restart soon.
A spokeswoman has said that its UK market to resume partial operations this summer.
And revealed that UK bookings for winter holidays are up 6% and summer 2021 “continues to look promising”.
Ahead of restarting, the tour operator has announced safety measures for its hotels, airline and cruises.
On planes, boarding will be staggered and everyone will have to wear masks.
Passengers will be encouraged to pre-order food and pay using cards.
Meanwhile, hotels will have extra cleaners and restaurants will be staggered.
Sports that encourage social distancing will run, such as golf, and kids clubs may be limited.
On cruises, passengers will have to fill out health questionnaires and will be screened before boarding by having temperature checks.
Kids clubs will be limited and there will be no self-service restaurants.
On June 15, the travel firm restarted the summer season with two full flights from Germany to Majorca.
“Based on our current restart dates, we are planning to operate around 30% of our original capacity in Q4 2020”, TUI said in an update yesterday.
On its website, TUI states: "All other holidays are continuing to operate as planned and will be continuously reviewed."
